Major European Markets Close in the Red

(Alliance News) – On Monday, all major European markets ended the day in negative territory. The ongoing conflict in the Middle East, compounded by a US strike on Iran and the potential closure of the Strait of Hormuz, led to a decline in leading European indices. Meanwhile, US markets edged into positive territory, albeit modestly.

Additionally, NATO has approved a commitment to increase defense spending ahead of next week’s summit. However, Spanish Prime Minister Pedro Sanchez has already indicated that Madrid does not intend to reach the 5% of GDP target, instead aiming for roughly half that amount.

Among Italian indices, the FTSE Mib closed down 1.0% at 38,884.51 points, the Mid-Cap fell 1.2% to 52,441.37 points, the Small-Cap slipped 0.9% to 30,508.62 points, and Italy Growth also ended in the red at 8,083.53 points, down 0.6%.

Other major European bourses also moved into negative territory: Paris’s CAC 40 closed down 0.7%, Frankfurt’s DAX 40 lost 0.4%, and London’s FTSE 100 dropped 0.2%.

Chris Beauchamp, Chief Market Analyst at IG, commented: “The big ‘selloff over US strikes on Iran’ lasted about six hours before futures stabilized and oil prices gave back their weekend gains. The absence of an Iranian counterattack on its nuclear facilities has given investors some hope the conflict will remain contained.”

“Safe-haven flows briefly boosted the dollar, but with no further developments in Iran, the ‘sell the dollar’ strategy returned. This move was further fueled by another Federal Reserve governor breaking ranks to call for a rate cut. This dovish caucus should grow louder as long as inflation remains contained,” the analyst added.

Back to Piazza Affari, only utilities gained ground, with A2A up 1.6% at EUR2.29 per share, continuing its positive performance from last week after the company announced it had purchased over EUR2 million in its own ordinary shares.

Terna followed, rising 1.3% to EUR8.688.

The daily newspaper Domani, in an investigation by Vittorio Malagutti, reconstructed the operation in which the Ministry of Economy sold 15% of Monte dei Paschi di Siena on November 13, 2024, through an accelerated bookbuilding process. The EUR1.10 billion transaction is under scrutiny to ensure compliance with transparency criteria required by law. Banca Monte dei Paschi Siena shares closed up 0.2% at EUR6.913 each.

Italgas – up 0.7% at EUR7.050 – announced that all 10.6 million unexercised option rights during the option period have been sold, granting the right to subscribe up to 2.6 million new ordinary Italgas shares, representing about 1.3% of the total new shares from the capital increase.

According to press reports cited by Bloomberg, Andrea Pignataro’s ION group is looking to acquire a minority stake in a new Italian digital bank backed by private equity firm FSI SGR and asset manager Azimut Holding, whose shares closed down 1.6% at EUR25.90 each.

Eni has signed an agreement with Ares Management’s Alternative Credit funds to sell 20% of Plenitude’s capital for approximately EUR2.0 billion. The “Six-Legged Dog” closed down 0.6% at EUR14.224.

Mediobanca – down 0.6% at EUR19.135 – reported that shareholder Aurelia sold put options on a total of 100,000 ordinary shares of the bank.

In the Mid-Cap segment, OVS purchased 299,498 of its own shares for over EUR1 million, closing slightly down 0.2% at EUR3.442 per share.

Technoprobe led the index, jumping 3.3% to EUR7.315 per share.

Credem fell 0.5% after buying back 92,500 of its own ordinary shares for EUR1.1 million.

d’Amico International Shipping dropped 3.3% after announcing the sale of two of its oldest vessels.

Tinexta ended at the bottom of the index, down 4.6% at EUR10.70 per share.

Among small caps, Trevi Finanziaria Industriale – up 3.5% at EUR0.2830 – announced Monday that, together with Soilmec, it secured contracts and orders worth over EUR140 million in April and May, raising the group’s order backlog to EUR715 million at the end of May.

Class Editori rose 1.2% to EUR0.172 per share after the publisher denied the sale of the company to Francesco Gaetano Caltagirone.

I Grandi Viaggi led the index, surging 7.2% to EUR2.09 per share.

Among SMEs, Finance For Food gained 3.2% to EUR1.60.

Frendy Energy performed even better, up 15%. Over the past month, since the company announced it closed 2024 with a net profit of about EUR600,000, the stock has climbed 20%.

ABP Nocivelli – up 1.0% at EUR5.15 – announced Monday that, through a notarial deed, it has finalized the merger by incorporation of its wholly owned subsidiary Run Power Plants.

ICOP – flat at EUR13.85 per share – announced Monday it will participate in the extension of Milan’s M1 metro line westward, from Bisceglie to Quartiere Olmi, with investments exceeding EUR100 million.

Impianti closed the basket down 5.5% at EUR1.210, while Execus dropped 6.8% to EUR1.230 per share.

Borsa Italiana also announced Monday that Neosperience shares are suspended from trading. Company news is expected on June 26.

As for US markets, the Dow rose slightly by 0.2% to 42,292.03, the Nasdaq gained 0.5% to 19,551.58, and the S&P 500 was up 0.5% at 5,0996.21,01.

In currencies, the euro traded at USD1.1531 compared to USD1.1513, while the pound was at USD1.3489 versus USD1.3464 in the previous session.

In commodities, Brent crude traded at USD76.13 per barrel from USD77.01 at the previous close, while gold stood at USD3,381.775 per ounce from USD3,368.715 previously.

Tuesday’s economic calendar features the German business expectations report and the ifo business confidence index at 1000 CEST, followed by a speech from Bundesbank’s Mauderer at 1100 CEST.

At 1200 CEST, focus shifts to UK industrial orders. At 1315 CEST, European Central Bank’s De Guindos will deliver a speech.

At 1430 CEST, attention turns to US current account data, followed at 1500 CEST by the release of annual and monthly house price indices.

At 1500 CEST, ECB President Christine Lagarde will speak, followed an hour later by Bank of England Governor Andrew Bailey.

From 1600 CEST, the spotlight will be on manufacturing indices, consumer confidence reports, and testimony from the Fed Chair in the US.

At 2230 CEST, the day concludes with the weekly US oil inventory report.

As for companies listed on Piazza Affari, no significant announcements are expected.

By Michele Cirulli, Alliance News Reporter

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